Little direction today....Narrow range
Like the USDJPY the EURJPY is having a tough go of it today. The range of 67 pips from the high to low is well below the average of 124 pips over the last 22 trading days (about a months worth of trading)..
Technically, the pair has not been able to hold onto any upside or downside momentum.
So what does the most recent picture show?
Well if you look at the hourly chart, the bias is more up with the current price at 136.18 but not by much..
- The price is above the 100 hour MA and the 200 hour MA (blue and green lines in the chart above). The closest MA is the 200 hour MA and that comes in at 136.128 currently
- The price is above - but just barely - the 50% of the move down from last weeks high at 136.159.
- The price is above - but just barely - the close from yesterday at the 136.16
- More bullish for the pair, is that traders did have a go below the 100 hour MA (blue line) but could not do much with that break. So it seems that buyers showed up and pushed higher. Can they keep control? Do they want to push it higher from here?
What about the 5 minute chart? Any clues there?
The price is above the 100 and 200 bar MA (blue and green lines in the chart below) and has extended above the 38.2% and 50% of the days range. That should be more bullish if the price can remain above that area (yellow area in chart below and above the MA lines).
So overall, intraday, if there is a bias, it is a little to the upside right now. But it needs to move away....and not go below 136.07 (100 bar MA on the 5 minute - blue line in chart below).
The hope is there is more juice in the tank and the market extends a range between now and the end of the day. Like the USDJPY it is a black or red bet. You need some luck, but the risk should be limited for a intraday trade at least. .
PS. Taking a step back and looking at the daily, the pair is between the 100 and 200 day MA (between the Goal Posts as I like to say). IN July and into August there have not been a closing level outside those MAs. There have been looks but no closes. At some point, that should be a nice trade to play a break and run away. So be aware. If there is a bias it is higher as the price is above the 38.2% of the move up from the April low. The correction of that move, held very near the 50% and the 100 day MA. That too is positive for the upside. But we need that break of the 200 day and we need to see the 38.2% continue to hold the downside too.